Everything happens quickly now—fast app development, fast service, fast response times. Everything in business is speeding up….except hiring. Glassdoor revealed that the average time to hire is 52 days, with the average cost of hiring at $4,000. But that’s only part of the picture—the other part is that employees are turning down offers: 47% of applicants turned down offers because they found better opportunities. Does hiring slowly benefit—or hurt—the bottom line?
This Will Hurt
For some companies, the hiring process has become an obstacle to success, largely because hiring managers are moving too slowly (years, in some cases) to bring on new talent. This slow hiring process is a relic from the recession, when companies were shedding employees and cutting budgets to the bone just to stay afloat. The risk of bringing on a new employee was great, so it made sense to be cautious. Even post-recession, a bad hire can be costly. Plus, employers note that a lack of talent was a key reason for not quickly filling positions. However, taking months—or even years—to fill a vacancy is catastrophic—both for the company’s reputation and wallet.
Accessing the Best…Or the Rest?
One line of reasoning behind a slow hiring process involves the idea that slowing down allows for a better assessment of the candidates. While it is important to vet candidates thoroughly, taking excessively long hurts a company’s prospects with the very best applicants—many who happen to be passive job seekers. Passive job seekers are potential employees who already have a job, but may be interested in expanding their prospects. Since they are already employed, they have a limited amount of time for interviews during business hours, long tests, or large “trial” projects. These candidates view a long or overly-cumbersome hiring process as a sign the company is not interested in their talents. These passive job seekers are typically scooped up by fast-moving businesses, leaving slower companies with candidates who may not have as many of the desired skills.
Only 5 Minutes?
Your company’s reputation is on the line during the hiring process. What happens during that time is a reliable signal of how your company operates. Strong candidates will bring their “A” game to interviews and will be assuming that you are, too. Having more than 3-4 interviews, dragging out the process, or asking for unreasonable deliverables sends a message—that the company has trouble making decisions, is slow to deal with issues, and wastes employees’ time with busy work.
Jump Ship
The effects of slow hiring ripple through an organization. Customers eventually feel the effects of slow hiring through lower-quality customer service, slower response times, and fewer product updates. They will take action by limiting their interactions with a company or even terminating business with it altogether. This is largely because an open position on your team affects everyone at the company. Other employees need to take on extra work until a candidate is found, so their primary functions, tasks, and projects suffer. Unfortunately, slow hiring is sometimes seen as a cost-saving device—after all, the company is saving on that salary and benefits package, right? However, not all effects from slow hiring can be immediately quantified in dollars and cents. Your current team members will try to shoulder more responsibilities, but as the weeks and months drag on, they will assume that the situation will not change. This can lead to your best employees leaving for other opportunities.
You’re Not Serious
Slow hiring practices are a red flag for recruiting agencies. This is because the recruiter has worked with you to understand your hiring needs and has taken the time to investigate what types of candidates may be a good fit—a process that happens more rapidly at a recruiting agency because the company is constantly in contact with industry organizations, business leaders, and a large pool of talent. A slow hiring process may cause the recruiter to think that you are not really interested in filling the position at the current time or that you are potentially working with other agencies. Either way, the situation will create a fracture in the relationship.
Hiring managers should identify the skill sets needed for an open position, implement a transparent, streamlined process that involves only a few interviews, and request a limited number of deliverables. An efficient, targeted hiring process can be greatly assisted by partnering with a recruiter with strong industry knowledge and contacts. If you have questions about developing a stronger hiring process or need to fill an open position, please contact us.
Like this post? Subscribe today to receive fresh content delivered to your inbox weekly!